The Business Judgment Rule and the Board

The business judgment rule requires members of the board of directors to exercise ordinary and reasonable care in performing their duties to an association. This rule seeks to strike a balance between potential overdelegation on the one hand, and completely concentrated power on the other. Under the business judgment rule, a board member will not be held personally liable for her actions that, although harmful to the association, were accomplished through the exercise of reasonable care.Board members must carefully supervise individuals with whom the board has delegated authority. Board members are often found to be in conflict with the business judgment rule when they depend too much on association managers or other employees. An association’s declaration may limit the board’s authority to delegate by stipulating the duties that are and are not delegable and which board members have the power to delegate.It is also essential for board members to act with good faith, diligence, care and skill in exercising her duties. Board members are held to the standard of a reasonable prudent person in similar circumstances. This site and any information contained herein is for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

“In the past, we felt like we did not get much support due to our size or the lack of effort from the person handling our account. I do not feel that way with Community Association Management. Our Property Manager has been very active in what we are trying to accomplish in our community and providing us with a variety of options. We are currently going through trying to figure out what to do about our roofing situation. The manager provided us good options and now we are in the process of starti…

Phenomenal Support!Darlene Z. Charlotte, NC

Community Association Management has been a godsend to our association. They are available 24/7 and they have all the answers we need. They cover the full gamut of services and have allowed us to consolidate several vendors into one source saving us countless dollars and hours. They have helped us change our operations from reactive decisions to informed proactive planning.

Dennis W., Greenville, SC"...a Godsend"

We needed structure and guidance and we are so appreciative to get that from this company.

R. BellTreasurerHope Crossing

I wanted to thank you for doing such a good job taking care of the property. I just wish I had the time to promote your company but due to my work load I haven’t been able to (but will when time permits) because you do such a great job. I can’t tell you how much this has meant to us for you to handle yourself so professional way with our owners.

R. Poore Charlotte, NCVery Professional...

When our new HOA was looking for a management company, several places that we contacted wouldn’t even give us the time of day because our community is so small that we weren’t worth their time and effort. In contrast, KDK Property Management (now part of Community Association Management) has provided our HOA with over a year of great service at an unbeatable price! The employees have frequently gone above and beyond the terms of our contract to protect the best interests of our neighborhood. F…

Hilary WadePresidentLaurel Village HOA

Solid Customer Service!
Your focus on solid customer service has made the transition go as smoothly as possible and reassures us we made the right decision to go with Community Association Management. I personally appreciate the way you communicate, your availability, and the way you make things happen.

J. WilliamsArdrey Place - Charlotte, NC

In the past, we felt like we did not get much support due to our size or the lack of effort from the person handling our account. I do not feel that way with Community Association Management. Our Property Manager has been very active in what we are trying to accomplish in our community and providing us with a variety of options. We are currently going through trying to figure out what to do about our roofing situation. The manager provided us good options and now we are in the process of startin…

Darlene Z. Charlotte, NCPhenomenal Support!

“Community Management is a very professionally run organization, with all of the aids and assistance necessary to help a HOA board of directors answer to their community’s needs.”

I just want you to know that you have a very valuable asset and as we evaluated our relationship with Community Association Management – which we just did by upgrading our service package, signing up for a new 3 year term, which included a full time property manager and also investing in project management services – that our desire to enhance the scope of our relationship had a large part to do with your team.

BarryPresidentEastover VillasCharlotte, NC

6 yrs ago Community Association Management helped bail us out from insolvency to today’s successful surplus balance ! Community Association Management took the legal actions required to resolve our long uncollected debts – and acquire paying owners. Resolution of financial disputes required a professional mediator – and the prior management company not only failed at that task – they gave other “bad” advice that resulted in deficit budgets. Community Association Management has given “good” advic…